A Maryland bank company has called off its deal to buy a mutual thrift because of regulatory concerns about the complex nature of the transaction.
Patapsco Bancorp in Dundalk announced plans in June to buy $19 million- asset Belmar Federal Savings and Loan Association in Baltimore. To make the merger possible, Belmar Federal had planned to convert to a public company with a commercial bank charter.
The deal, which was to be priced after Belmar's conversion, was canceled after regulators made clear that the two sides would have trouble getting the needed approvals.
Joseph J. Bouffard, president of $90 million-asset Patapsco, said he is "extremely disappointed" that a deal could not be worked out.
"We continue to believe the transaction would be beneficial to both organizations, our customers and community, and Patapsco shareholders," he said.
Patapsco said it will take a charge of $89,000 for the second quarter to pay for merger expenses.